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HomeMy WebLinkAboutInducement Resolution relating to the issuance of Economic Development Revenue bonds to Thomas and Jane KinnucanAttest: RESOLUTION NO. 771 -80 Passed by the Common Council of the City of South fiend, Indiana, April 14, 19 80 Clerk President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana April 15, Approved and signed by me 19 e6 t City Clerk Mayor RESOLUTION NO. 771 -80 INDUCEMENT RESOLUTION OF THE SOUTH BEND COMMON COUNCIL RELATING TO THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS TO THOMAS AND JANE KINNUCAN IN ORDER TO EXPAND THEIR PRESENT FACILITIES FOR THE MANUFACTURE AND WAREHOUSING OF AIR TANKS USED IN FREIGHT TRAILER BRAKE SYSTEMS WHEREAS, the South Bend Economic Development Commission investigated, studied, surveyed and reported to the Mayor and the Common Council of the City of South Bend, Indiana, that a need exists in the community for additional job opportunities and commercial diversification within the City of South Bend, Indiana; and to improve and promote job opportunities and commercial diver- sification within the City of South Bend, Indiana, a financing agreement should be effected with Thomas and Jane Kinnucan; and WHEREAS, Thomas and Jane Kinnucan desire to construct an additional building and purchase additional equipment for commercial use on land located at 2502 Lawton Street, South Bend, Indiana; and WHEREAS, to induce Thomas and Jane Kinnucan to construct such economic devel- opment facilities, the South Bend Economic Development Commission on April 8, 1980 approved the application of Thomas and Jane Kinnucan for the issuance of up to Three hundred thousand Dollars ($300,000) of Economic Development Revenue Bonds payable with interest thereon at the market rate as of the date of final approval of the bonds and also adopted an Inducement Resolution relating to that bond issue; and WHEREAS, it is apparent that Thomas and Jane Kinnucan will preserve jobs and increase job opportunities and commercial diversification in South Bend, Indiana, resulting in a benefit to the welfare of the public in the City of South Bend, Indiana, and St. Joseph County, Indiana. NOW, THEREFORE, BE IT RESOLVED, that in order to encourage, induce and soli- cit the application by Thomas and Jane Kinnucan for an amount not exceeding Three hundred thousand Dollars ($300,000) of Economic Development Revenue Bonds to be issued by the City of South Bend, Indiana, repayable with interest thereon at the market rate as of the date of final approval of the bonds over a period of ten (10) years after the issue date for the construction of such economic development facilities, the City of South Bend shall proceed to cooperate with and take any action as may be necessary in drafting of documents or the perfor- mance of such other acts as will facilitate the issuance of such Economic Development Revenue Bonds by the City of South Bend, Indiana, to provide funds to be used toward the payment of the costs for the acquisition and construction of such economic development facilities; and BE IT FURTHER RESOLVED, that any costs or expenses incurred in connection with the Thomas and Jane Kinnucan Project shall be included in the project costs and reimbursed from the proceeds of the Economic Development Revenue Bonds to be issued with respect thereto; and BE IT FURTHER RESOLVED, that the liability and obligation of the South Bend Economic Development Commission and the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such proceedings and issue such Bonds, and neither the South Bend Economic Development Commission nor the City of South Bend, Indiana, or its officers or agents, shall incur any liability if for any reason the proposed issuance of such Bonds is not consummated. This Inducement Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. ja If— T NOT APPRM- W Member of the Common Council FILED IN CLE 1 OFFICE APR -� 1980 Irene Gammon CITY CLERK, SOUTH BEND,IND. ATTORNEYS AT LAW ROEMER AND MINTZ CHARLES ROEMER 1400 ST. JOSEPH BANK BUILDING AREA CODE 219 RICHARD L. MINTZ SOUTH BEND, INDIANA 46601 TELEPHONE 232 -1442 April 3, 1980 Mrs. Irene K. Gammon City Clerk County -City Building South Bend, Indiana 46601 Re: Inducement Resolution Economic Development Bond Issue Thomas and Jane Kinnucan Project Dear Mrs. Gammon: Enclosed is a proposed Inducement Resolution by which the Common Council induces Thomas and Jane Kinnucan to submit an application for up to $300,000 of Economic Development Bonds repayable with interest thereon at the market rate as of the date of final approval of the bonds over a period of ten years to finance the construction of an additional building and the purchase of additional equipment to be used for the manufacturing and warehousing of air tanks used in freight trailer brake systems. By the construction of this project, a minimum of 8 - 10 jobs will be created having an annual payroll of $120,000. This Inducement Resolution is needed so that Thomas and Jane Kinnucan may begin construction of the facility shortly. If immediate action is not taken, construction cannot be started until summer and the delay could result in the loss of the above mentioned jobs. We are requesting that you place this Inducement Resolution on the agenda for the consideration of the Common Council at its April 14 meeting. Enclosed is a copy of the Inducement Resolution to be passed by the Economic Development Commission at its April 8 meeting. We are also including 9 copies of this letter and request that you distribute them to the Council members. Thank you very much for your cooperation in this matter. Sincerely, Richard L. Mintz jk Enclosures cc: Mr. Kenneth P. Fedder Mr. and Mrs. Thomas Kinnucan INDUCEMENT RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION WHEREAS, the South Bend Economic Development Commission has heretofore investigated, studied, surveyed and reported to the Mayor and the Common Council of the City of South Bend, Indiana, that a need exists in the community for additional job opportunities and industrial diversification within the City of South Bend, Indiana; and to improve and promote job opportunities and industrial diversification within the City a financing agreement should be effected with Thomas and Jane Kinnucan; and WHEREAS, Thomas and Jane Kinnucan are presently leasing facilities to Overhill Mfg., Inc., which is using said facilities to engage in manufacturing and warehousing air tanks used in freight trailer brake systems and the Kinnucans desire to build a new building and purchase equipment to lease to Overhill Mfg. to expand its business and to continue its operations in this County, if the Commission and the City will agree to a financing agreement acceptable to them pursuant to which the new building will be constructed and improved with the proceeds from bonds to be issued by the City in the approxi- mate amount of Three hundred thousand ($300,000) Dollars; and WHEREAS, to induce Thomas and Jane Kinnucan to construct said building, purchase said equipment and lease the same to Overhill Mfg., the Commission desires to adopt this resolution; and WHEREAS, it appears clear from the application submitted to the Commission dated March 6, 1980, and other information received by the Commission that the new facility will increase job opportunities and industrial diversification in the County resulting in a benefit to the welfare of the County; NOW, THEREFORE, BE IT RESOLVED that the South Bend Economic Development Commission approves the proposal of Thomas and Jane Kinnucan to construct a new building in St. Joseph County and purchase equipment at an estimated project cost of approximately Three hundred thousand ($300,000) Dollars. BE IT FURTHER RESOLVED that to induce the continuation of the operation of the facility in the City, the Commission will proceed to cooperate and take such action as may be necessary in the drafting of documents as may be necessary to issue the City's Economic Development Revenue Bonds to provide funds to pay for the construction of the building. BE IT FURTHER RESOLVED that any expenses incurred in connection with said proceedings and the construction of the building shall be included in the pro- ject cost and reimbursed from the proceeds of said bonds. BE IT FURTHER RESOLVED that the liability and obligation of the Commission and the City shall be limited solely to the good faith efforts to consummate said proceedings and issue the bonds, and neither the Commission, the City, its a officers or agents shall incur any liability whatsoever if for any reason the proposed issuance of the bonds is not consummated. Dated this day of , 1980. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION Jerry Hammes President Frank Horvath Vice President Walter Mucha Secretary - 2 -